Gsc Executives Accused Of Diverting Funds

July 2, 1987|By TOM STIEGHORST, Business Writer

The trustee of defunct Government Securities Corp. acted on Wednesday to freeze the bank accounts of former GSC President Michael Rehtorik and Vice President Oscar Gomez, saying he is unable to account for more than $800,000 invested with the Coral Gables securities firm.

Trustee John R. Camp Jr. was granted a temporary restraining order by U.S. Bankruptcy Court Judge A. Jay Cristol, freezing for 10 days accounts held by Rehtorik and Gomez at Creditbank and Sunset Commercial Bank, two Miami financial institutions.

In a complaint, Camp said Rehtorik and Gomez diverted into personal bank accounts funds that customers thought they had invested with GSC. Customers were told the money was placed in ``managed accounts.``

``Plaintiff has been unable to locate any record of these so-called `managed accounts,` `` Camp`s complaint said.

So far, 18 claims against the Government Securities estate are ``pending or likely`` for which no records exist in the company`s files, the complaint said.

Rehtorik and Gomez couldn`t be located for comment.

One case in which funds were diverted began last September, the complaint alleges, when Gomez accepted a $15,000 cashier`s check from Jeannie Fuentes to open a GSC account.

The money was to be invested in Ginnie Mae certificates, a mortgage-backed government security sold by GSC. It was deposited in a Creditbank account into which Gomez also made deposits of his salary ``draws`` from GSC, the complaint said.

No record of a GSC account for Fuentes can be found, although Gomez signed a contract to invest the funds with GSC.

Gomez later paid two withdrawals of $500 and $1,500 to Fuentes and accounted for them on GSC records as fees for professional services, the complaint said.

Government Securities Corp. of Coral Gables was the largest broker of Ginnie Maes in Florida until April, when it abruptly closed and was given to the federal Securities Investor Protection Corp. for liquidation.

Florida Comptroller Gerald Lewis said errant bookeeping made it impossible for GSC to know if it complied with financial reserve requirements. Camp became trustee May 12, when GSC entered bankruptcy proceedings.

In his complaint Camp also alleged Rehtorik and Gomez contacted former customers in June, seeking to assume personally the obligation to repay investments supposedly made with GSC.

Camp asked Cristol to block any contact between the GSC executives and former customers.

The complaint also details a $200,000 investment made by Leopoldo Fuentes in January, to buy securities for his himself, his wife, nephew and his nephew`s mother. Those funds were put in personal accounts used by Rehtorik at Creditbank and Sunset Commercial Bank, the complaint said.

In an affidavit, Fuentes said he never received Ginnie Mae certificates or ownership records from GSC for the $200,000 investment.